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A term insurance plan is also called a pure life insurance product that provides coverage for a certain period. If the person dies during the period specified in the policy and is active or in force, the benefit will be paid. The premium paid on term life insurance is used to cover the risk of the insurance policyholder. Term life insurance is the best way to secure your family financially. It covers the policyholder for an extended period; generally, the policy term starts from the age at which the policy is purchased. Thus, it is possible to get a term insurance policy for 50 or even 60 years at an affordable premium which may vary.
Benefits of term life insurance
Many term insurances benefits make it an excellent investment to secure the family’s financial safety.
Affordable premiums: one of the significant benefits of a term insurance plan is the affordability of premiums. It is possible to get a cover of Rs 1cr without spending a considerable amount. Term insurance premiums purely reflect the risk of covering the policyholder’s life. The insurance companies also charge less amount of compensation for a healthy person.
Policy tenure: The tenure of a term insurance plan last from the age at which the policy was purchased and continues till the period specified in the policy. The term life insurance ends when the policyholder crosses the specified age. For example, if the insurance holder is 30 when he buys the best term plan and when the insurance holder reaches the age 70 years, the insurance duration is 40 years.
Online term insurance policies: one of the most significant advantages of a term insurance plan is that policies are readily available online. It is convenient to buy them directly from the insurance company website or with the support of an insurance web aggregator, or from any other insurance company.
Tax benefit: term plans are counted as the best term plan and get a tax deduction for premium paid under sec 80c of income tax act 1961. this deduction is limited to Rs one lakh and fifty thousand, and it covers premium for self and dependent. This deduction will only be allowed if the premium paid is less than ten per cent of the sum assured.
Features of term life insurance plan
The death benefits: the sum assured under term insurance online is paid out in case of the policyholder’s death to the nominee.
Non linked plan: a term plan’s sum assured is not linked to any market factors.
Medical test: most insurance companies require a mandatory medical examination as per their risk assessment criteria before issuing the insurance policy. some companies have started offering medical checkup
Flexibility: the life insurance policy should be flexible. These can be providing multiple payment options, freedom to choose the mode and duration of payment etc.
Term and condition: the term and condition part associated with the policy thoroughly there can be certain things that we might not be aware of or the agent did not communicate to us.
Conclusion
Human life is subject to the risk of death and disability due to natural, accidental causes. A life insurance policy helps to minimize the risk of financial difficulties faced by families. life insurance is one of the most important financial planning tools available in the market. so, there is anything that is needed badly in this situation, it is none other than life insurance